Online Desk: People who intended to buy apartments were showing increased interest in second hand ones in recent times as an affordable alternative to new properties that has become exorbitantly expensive, real estate sector insiders have said.

Less hassle in the process of buying and ready-to-use utility connections, specially piped gas in many cases, also attracting the buyers to the used flats at different parts of the capital, they said.

The sector insiders also attributed the recent market trend to inadequate supply of new homes compared to growing demand.

They said the realtors have been struggling to commence and accomplish new projects since the introduction of the latest Detailed Area Plan (DAP) for Dhaka.

The new DAP is claimed to have shrunk their profitability while the rising cost of raw materials put an additional pressure on the sector.

An executive of a state-owned bank Sadikur Rahman recently bought a 1,524 square feet used apartment in the city’s Uttara sector-13 utilising his loan facility from his employer.

“The 10-year-old property costs around TK 12 million,” he said, adding that a new flat of similar size in the same area would cost nearly Tk 20 million.

Actually, there is hardly any difference between such an old and a new property, but the price gap is significant, he added. “I had a special preference for the used ones not only for my budget limitation, but also the process of buying a brand new flat which is lengthy and there is uncertainty over its handover process.”

Like Uttara, some other areas in the capital like Mirpur and Bashundhara have become centres of buyers’ attractions for second hand flat deals, according to data analysed by Bproperty, an online real estate brokerage platform. The demand and sales of used property marked a significant rise in the last three years, it suggests.

Mid-sized flats of around 1,500 square feet are selling the most in 10 selected areas including Banani, Banasree, Bashundhara RA, Dhanmondi and Gulshan.

Of the total used flats sold using the platform, 28 per cent was in Mirpur area alone. Average asking price of the sellers was Tk 6,747 per sq. ft. and the average buying price was Tk 6285 per sq. ft.

Besides Mirpur, other areas like Uttara and Bashundhara residential area are also two noteworthy places for the second hand property deals.

As the used property market is growing, leading realtors are also expanding their footprints through dedicated brokerage wings in addition to the regular agencies, sources said.

There are around 40 brokerage platforms though nearly 10 are active including the BTI Brokerage, Concord Property Solutions, Ratul Properties, and Bproperty.

Director of sales and business operations of Bproperty Monir Ahmed Khan said: “Inflation, new technology implementation, and the major rise in prices of raw materials has pushed people’s search area from primary housing to the secondary market.”

He identified some challenges in dealing with second hand property including lifespan of a flat and proper documentation with the owners in many cases.

“Some of the properties are so old and have changed hands so many times, that files, registrations, and documents are either lost, unheard of, or were never properly transferred,” he added.

Sources said nonresident Bangladeshis, service holders with home loan facilities look for the second hand flats in most cases.

Chief Executive Officer (CEO) of Ratul Properties Ltd Somnath Sarkar said that new flat prices increased by 30-35 per cent on an average, making them beyond the reach of many buyers.

Underscoring the need for customers’ prudence while buying used flats, he said formal platforms can help customers choose the desired flats within their budget and at ease, he said.

“Peace of mind that everything is covered knowing that the broker will arrange for the necessary papers and arrange for registration,” he added.

However, sources said the registration cost hike in the current fiscal year has been a challenge for the buyers.